Why a Certified Equipment Appraisal is required by Banks, CPA's, Attorneys and Businesses
Lenders are required to substantiate equipment values to safisfy the U.S. Small Business Administration (SBA) and Bank Examiners. CPAs are also required by the IRS to substantiate equipment values to satisfy the Pension Protection Act of 2006 and AICPA Standards of Valuation #1. Likewise, Attorneys need to rely on a qualified and certified appraisal when representing a client. Each of these professionals all ask the same question: “What’s the equipment really worth?” They may even ask…”Is there goodwill?” “ Do only the tangible assets of your business have value?” If so, how are those assets valued?
Do you guess?
Do you rely on the word of a non-certified person who may have a hidden agenda (auctioneer or dealer) who may have a hidden agenda?
Do you rely on the depreciation schedule or book value?
BEWARE! Guessing, relying on the word of a non-certified person, or relying on a depreciation schedule is inaccurate, unsubstantiated, filled with liability, risky, and will not hold up to scrutiny!
Estimating the true market value of your machinery and equipment at any given time requires the specialized skills of a professional who has the expertise and certification to determine its true fair market value. Whether you need to know the fair market value or other standards of value such as liquidation value, salvage value or replacement cost, doesn’t it make sound financial sense to obtain a credible Certified Equipment Appraisal Report that holds up under scrutiny with financial institutions, government agencies, buyers, sellers, shareholders or partners?
Truman Mox is your leading Certified Equipment & Machinery AppraiserJuly 31, 2012 12:00 am